UAE Shatters Records with First Digital Dirham Transaction—Under 2 Minutes

Move over, legacy banking—the UAE just flexed its CBDC muscle.

The Digital Dirham's debut transaction clocked in under 120 seconds, leaving SWIFT settlements eating dust. No intermediaries, no 3-day waits—just a central bank blinking money into existence.

Traditional finance response: 'But have you considered... fees?'

The Digital Dirham government transaction took less than 2 minutes

Ahmed Ali Meftah, executive director of the central accounts sector at the Department of Finance, noted that the pilot was conducted to test operational readiness and ensure seamless technical integration with the UAE Central Bank’s systems.

He explained, “The transaction was completed in less than two minutes, underscoring its goal of enhancing operational efficiency and expediting financial settlements between federal and local government entities.”

In an X post, H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, noted, “Today, Ministry of Finance & Dubai Finance marked a pivotal milestone in the history of government financial transformation in the UAE, as we executed the first government transaction using the Digital Dirham issued by the Central Bank of the UAE, representing the future of the national digital currency in both government and private sector transactions.”

He noted that it will enhance transparency and efficiency in government financial systems.

Today, Ministry of Finance & Dubai Finance marked a pivotal milestone in the history of government financial transformation in the UAE, as we executed the first government transaction using the Digital Dirham issued by the Central Bank of the UAE, representing the future of the… pic.twitter.com/gYRiTC1Euh

In a press release, His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court and Chairman of the Central Bank of the UAE, affirmed that the Digital Dirham represents a strategic pillar in the UAE’s pursuit of establishing an integrated digital economy and embodies the vision of the wise leadership in consolidating the UAE’s position as a global financial hub.

Mohammed Hadi Al Husseini, Minister of State for Financial Affairs, also noted that the use of the Digital Dirham for government transactions is a qualitative shift in leveraging financial technology, creating an opportunity to develop government and private payments.

Meanwhile, the Governor of the Central Bank of the UAE Khaled Mohamed Balama, said that this was a qualitative milestone in the UAE’s digital transformation, which will strengthen financial stability and enhance the country’s financial ecosystem.

IMF Commends UAE on CBDC project

In October 2025, an IMF (International Monetary Fund) statement after an IMF staff team led by Mr. Said Bakhache visited the UAE, commended the country on its enhancements to the AED Dirham monetary framework, and the progress in the rollout of the Digital Dirham CBDC project, as well as its proactive stablecoin regulations. The IMF statement called on modernization efforts to continue to include careful assessment of risks while promoting local capital market developments.

In August 2025, the Central Bank of the UAE announced it was preparing itself to launch Digital Dirham, its CBDC, by the end of the year. The digital Dirham will be allowed for in-store and commercial peer-to-peer transactions.

Furthermore, the CBUAE has developed a comprehensive platform for issuing, trading, and using the digital dirham, including the digital wallet, which enables individuals and businesses to conduct financial transactions.

In March 2025, the Central Bank of the UAE (CBUAE) unveiled its new symbol for the UAE’s national currency, the Dirham, committing to the launch of the Digital Dirham as a CBDC.

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